PropTech stands for property technology, is a relatively recent movement in the real estate industry. The movement is an innovative approach that uses technology to optimize how consumers and real estate professionals interact with property. PropTech, therefore, leverages digitalization to help property managers, owners, builders, and landlords to manage their assets.
Airbnb is a platform business model making money by charging guests a service fee between 5% and 15% of the reservation, while the commission from hosts is generally 3%. For instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees.
Offerpad is a tech-enabled real estate platform enabling users to buy and sell homes. The company makes money via service fees. Indeed, whenever a home is sold through the Offerpad platform, the company collects a service fee. And it also makes money via sales profits As a seller and buyer of homes, Offerpad is in a position to make a profit on homes they sell to members of the general public.
Opendoor is a digital real estate platform for buyers and sellers. As a real estate company, Opendoor also purchases homes to sell them at a profit. Opendoor makes money via seller fees when homes are sold through the platform, profits from homes bought by sellers and resold on the platform, and home loans in the form of interest income.
OYO business model is a mixture of platform and brand, where the company started primarily as an aggregator of homes across India, and it quickly moved to other verticals, from leisure to co-working and corporate travel. In a sort of octopus business strategy of expansion to cover the whole spectrum of short-term real estate.
Redfin is a real estate platform with a hybrid approach (automation with the human in the loop) to enable buyers and sellers deal-flow. Redfin charges sellers a listing fee in the range of 1.0-1.5%. With RedfinNow, the company also purchases homes and resells them on its platform for profits. Redfin also makes money from its financing solutions and via its concierge services.
SoFi is an online lending platform that provides affordable education loans to students, and it expanded into financial services, including loans, credit cards, investment services, and insurance. It makes money primarily via payment processing fees and loan securitization.
WeWork runs a membership model that gets monetized via a set of packages which include ancillary value-added products and services to enable companies to scale or shrink their workspace on-demand. WeWork defined its revenuemodel space-as-a-service claimed to be more scalable than a traditional commercial real estate.
Zillow is an online real estate marketplace, matching buyers and sellers and renters and landlords through a massive platform with personalized search and discovery experiences and simple UI for both buying/renting and selling/listing. The company makes money by charging a fee on the sales and additional services like premium agents and mortgage services for buyers.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
